Correlation Between Telia Company and Millicom International
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By analyzing existing cross correlation between Telia Company AB and Millicom International Cellular, you can compare the effects of market volatilities on Telia Company and Millicom International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Telia Company with a short position of Millicom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telia Company and Millicom International.
Diversification Opportunities for Telia Company and Millicom International
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telia and Millicom is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Telia Company AB and Millicom International Cellula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millicom International and Telia Company is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Telia Company AB are associated (or correlated) with Millicom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millicom International has no effect on the direction of Telia Company i.e., Telia Company and Millicom International go up and down completely randomly.
Pair Corralation between Telia Company and Millicom International
Assuming the 90 days trading horizon Telia Company AB is expected to generate 0.93 times more return on investment than Millicom International. However, Telia Company AB is 1.07 times less risky than Millicom International. It trades about 0.01 of its potential returns per unit of risk. Millicom International Cellular is currently generating about -0.03 per unit of risk. If you would invest 3,181 in Telia Company AB on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Telia Company AB or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telia Company AB vs. Millicom International Cellula
Performance |
| Timeline |
| Telia Company |
| Millicom International |
Telia Company and Millicom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telia Company and Millicom International
The main advantage of trading using opposite Telia Company and Millicom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telia Company position performs unexpectedly, Millicom International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Millicom International will offset losses from the drop in Millicom International's long position.| Telia Company vs. Alfa Laval AB | Telia Company vs. Anoto Group AB | Telia Company vs. Active Biotech AB | Telia Company vs. BioInvent International AB |
| Millicom International vs. Lidds AB | Millicom International vs. Serstech AB | Millicom International vs. Transtema Group AB | Millicom International vs. Enorama Pharma AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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